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People & COVID — It’s a Growing Financial Struggle

Posted By Gary Wolcott, Tuesday, August 4, 2020

TransUnion is one of the many credit bureaus working in the U.S. It recently did a survey of consumers and how the COVID-19 pandemic is impacting them and their financial situation.

The results paint a dire picture. Over half say sometime in the next six-weeks they will not be able to pay their bills or the loans they’ve taken out. And 51% say they have drastically cut discretionary spending.

TransUnion says 69% of the 2,000 adults surveyed with a household member working in restaurants, financial services, manufacturing or retail are in a serious struggle to stay afloat.

Breaking it down, 77% say someone in their household working in the restaurant or food industry has been financially impacted by COVID. They’ve either lost their job or seen reduced hours. For manufacturing and retail, 68% say someone in their household working in those industries have seen the same impact.

When it comes to spending:

    * 51% say they have cut back on discretionary spending
    * 23% have cut the amount of money they invest in retirement and savings    
    * 19% have postponed the purchase of an automobile    
    * 12% have put buying a home on hold

For some the troubles are compounded:

    * 19% are dipping into retirement savings to pay bills
    * 18% are using credit to stay afloat
    * 40% are concerned over their ability to pay credit card bills
    * 26% are worried they can’t make their car payments
    * 23% have the same worry about a mortgage payment
    * 20% have personal loan concerns
    * 15% don’t think they can pay student loan bills

The different generations are all responding differently. Some 60% of millennials (age 23 to 38), Generation X, born in the early 1960s to the late 1970s and Generation Z, mid-to-late 1990s to the early 2010s, have contacted companies to discuss options to pay their bills.

Just 30% of baby boomers have done so.

When it comes to the discussions with companies:

    * 32% want plans to catch up gradually while still making regular payments
    * 21% prefer a loan extension for a few months
    * 18% want to pay off all delayed payments at once.

Source link: PropertyCasualty360.com


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